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palebadgworthy

The answer is 2%.

In order to find the real GDP figure, the Fisher equation needs to be applied as follows:

r= i - π

where,

  • r is the real interest rate
  • i stands for the norminal interest rate
  • π stands for the inflation rate

Therefore:

r= i - π = 4% - 2%= 2%

Answer:B. 2%

Explanation:

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